Lafarge announce 17% fall in sales
LAFARGE have recently announced their results for the fourth quarter and full year ended 31 December 2009. Consolidated net sales of €3.64 billion were reported for the fourth quarter, down 22% compared with the same period of 2008. Likewise, operating profit was down 34% to €494 million.
The company reported a 17% decrease in consolidated net sales to €15.9 billion for the full year, compared with €19 billion in 2008, while operating profit was down 30% to €2.47 billon (2008: €3.54 billion). Lafarge reduced their net debt by €3.1 billion and exceeded their action plan targets for the full year, thanks to strong cash generation.
Despite the economic problems that have led to a significant drop in construction projects and a subsequent fall in cement demand, Lafarge is forecasting a 5% pick-up in global construction over the next 12 months.
‘Entering 2010, we anticipate overall cement demand will increase in our markets,’ said Bruno Lafont, chairman and chief executive officer for Lafarge. ‘While mature markets are expected to recover slowly during the second half of the year, we also see emerging markets providing solid growth potential.
‘Our development programme has already added cement capacity in these markets allowing Lafarge to capture this growth. Our development in emerging markets, promotion of innovative products and focus on cost reduction are strong foundations for economic recovery and a return to earnings growth.’
The company reported a 17% decrease in consolidated net sales to €15.9 billion for the full year, compared with €19 billion in 2008, while operating profit was down 30% to €2.47 billon (2008: €3.54 billion). Lafarge reduced their net debt by €3.1 billion and exceeded their action plan targets for the full year, thanks to strong cash generation.
Despite the economic problems that have led to a significant drop in construction projects and a subsequent fall in cement demand, Lafarge is forecasting a 5% pick-up in global construction over the next 12 months.
‘Entering 2010, we anticipate overall cement demand will increase in our markets,’ said Bruno Lafont, chairman and chief executive officer for Lafarge. ‘While mature markets are expected to recover slowly during the second half of the year, we also see emerging markets providing solid growth potential.
‘Our development programme has already added cement capacity in these markets allowing Lafarge to capture this growth. Our development in emerging markets, promotion of innovative products and focus on cost reduction are strong foundations for economic recovery and a return to earnings growth.’
